Home / Business / Lufthansa agrees to give up airports for $ 9.7 billion in bailout | News

Lufthansa agrees to give up airports for $ 9.7 billion in bailout | News



Lufthansa has agreed a compromise with the German government and the European Union on the way to the final approval of a nine billion ($ 9.7 billion) bailout agreement.

The German airline said in a statement on Saturday that its board had decided to accept the agreement between the dealers for Berlin and the European Commission, which means that several castles were released at Frankfurt and Munich airports.

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Late Friday, government sources told the DPA news agency that the German government had also agreed to the compromise.

Lufthansa said that the scope of the commitments required by the European Commission had diminished compared to the original plans.

The company must remove up to four of its aircraft from Frankfurt and Munich airports to allow competitors to take these slots, which according to Lufthansa gives rise to three take-off and three landing rights per aircraft per day.

The departed arrival and departure times are reportedly only available to new competitors at Frankfurt and Munich airports for at least 1

8 months.

If no new competitor takes advantage of the opportunity, it will also be extended to existing competitors at each airport.

The slot machines should be awarded as part of a bidding process – and only taken over by a European competitor who has not received any significant government recapitalization due to the coronavirus pandemic.

The EU said the compromise reflects the commitment of Germany and Lufthansa “to maintain effective competition”.

“This would allow for feasible entry or expansion of activities by other airlines at these airports for the benefit of consumers and effective competition,” an EU spokesman said on Saturday morning.

Pending approvals

The Lufthansa Board must approve the rescue package, including these requirements, as required by the European Commission’s Competition Watch Dog.

The company then plans to convene an Extraordinary General Meeting immediately to obtain shareholder approval for the package.

The $ 9.7 billion Bailout Agreement provides support and capital measures for the malicious carrier.

In addition to the full approval of Lufthansa’s Board of Supervisors, the European Commission competition dog must still sign off.

The German Ministry of Economy also pointed out that the rescue has not yet received final approval.

“In addition, talks are underway with the EU Commission on state aid approval,” the ministry said in a statement on Saturday morning.

Lufthansa is Europe’s second largest airline by number of passengers. It was profitable before the pandemic founded about 90 percent of its plans. At a time during the health crisis, the company lost about EUR 800 million ($ 888 million) per month.


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